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Jillian Goodman SMB Licensing Marketing Manager (Independent Contractor) Microsoft New Zealand.

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Presentation on theme: "Jillian Goodman SMB Licensing Marketing Manager (Independent Contractor) Microsoft New Zealand."— Presentation transcript:

1 Jillian Goodman SMB Licensing Marketing Manager (Independent Contractor) Microsoft New Zealand

2 Open Programs Overview Pricing and Program Comparison: Open Value Subscription Open Value Open Business Partner and Customer Value Summary Resources

3 Microsoft Open Value Microsoft Open Value Subscription Microsoft Open Business All programs have in common Volume Licensing – no need to manage boxes and disks Requires a level of commitment In some cases a minimum of 5 licenses Sometimes licensing every desktop in the company Discounts depend on commitment and vary by program Programs offer many benefits


5 SMB Licensing over the last decade FPP and OEM Open Business (here now) Open Value



8 Open Value: 5 L&SA or 5 x SA Annual purchasing (over 3 year agreement) Open Business: 5 x mixture of L, L&SA, SA, L&SA/SA should be via Open Value Upfront only (2 years) Same Price - two different ways to procure.

9 How CompanyWide Licensing works: Programs: Open Value, Open Value Subscription Requires licensing across every desktop in Company of at least one Platform Product Customer chooses from a list of “Platform” products Platform products are grouped into three families: 1. Microsoft Office 2. Client Access Licenses 3. Windows OS Upgrade Discount depends on commitment All products other than Platform Products can be licensed in any quantity within the same agreement

10 Licensing products other than those listed above? Products such as Servers etc may be licensed in any quantity within the same Open Value or Open Value Subscription agreement, and are referred to as ‘additional products’. Additional products are simply ordered as needed, an paid for by the end of the month of deployment.

11 Professional Desktop (bundled) Microsoft Office Professional Plus 2007 Core Client Access License Windows Vista Business Upgrade Small Business Desktop (bundled) Microsoft Office Small Business Microsoft Small Business Server CAL Windows Vista Business Upgrade Custom Platform (mix and match) Choose three Platform Products Microsoft Office Suites (3 options, can mix and match) and Client Access Licenses (4 options, choose one product) and Windows Operating System (2 options, choose one product)

12 Commitment: One or two Platform Products CompanyWide

13 Open Value CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products Non CompanyWide; No Companywide commitment required. Minimum of five Licenses with Software Assurance (SA) Open Value Subscription CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products Programmatically: Open Value Subscription works the same way as Open Value Except for: Software purchased via Open Value Subscription are non-perpetual (temporary) There is no ad-hoc purchasing option available in Open Value Subscription










23 Economic Climate Organisations need to remain competitive. Ability to access technology solutions critical Business Uncertainty Solution: Open Value Subscription Subscribe to licenses Lower upfront cost Either increase or reduce licensing commitment annually


25 For Platform Products only Programmatic benefit for Open Value Subscription Gives customers credit for past purchases of Microsoft products Up to 50% “UP TO DATE” Discount (UTD) in year 1 of 3 year Open Value Subscription agreement Criteria: Customer must have a qualifying version of the product listed through OEM (preinstalled on hardware) FPP (boxed product via a retailer) Volume Licensing (Open Business, Open Value etc) Proof of purchase may be required when UTD skus are purchased Updated eligible products in Microsoft Product List:


27 1.Renew for another three years under Open Subscription 2. Let Open Value Subscription Agreement expire. Would no longer have licensing rights to any software received through Open Value Subscription and would need to uninstall and cease using the software. 3. Elect to ‘buyout’ the licenses Buy-out fee is 1.75 X annual fee. Customer can then enroll perpetual licenses into Software Assurance within 30 days of the expiration of the Open Value Subscription Agreement.

28 The buyout SKUs are on the price list Have “Each” in the Purchase Unit column or product description e.g. Office Pro 2003 All Lng OLV NL Each Ent. Customer can choose to buy out: Platform products: All qualified desktops covered by the orders placed during the final year of the agreement term. Additional products: Any quantity of additional products ordered during the final year of the agreement. Buyout License will be for the most current version If a customer is licensed for the professional version of a product, then they cannot buy-out the Standard version of the product Buyout order must be at least 30 days before agreement expiration date


30 Encourage customers to move from reactive to proactive licensing Reactive = immediate need. Often stress/time constrained, budget constrained. Proactive = looking at things long term Understand the business benefits of the technology. Choose a licensing STRATEGY. Understand options. Compare licensing options over a 6 year period. Consider tax effects on purchasing. Use of money etc Need SA? Always Open Value. Open Business = License only Buying individual CALs? Consider the suite. Look long term. There is a minimum way to buy and a best way to buy

31 Establish your company as THE partner for 3 years Secure additional revenue streams Ensure future revenue streams Get predictability in your sales business Help your customers maximize the value of their technology investments Stretching your customers costs out over the three-year agreement term, frees up cash for software deployment and additional services. Drive your revenue and service opportunities. Less hassle than with Open License because Microsoft sends media kits directly to the customer. Ability to include affiliates in the agreement increases volume and strengthens the relationship with the customer. Lower overhead costs than with Open License because customers are allowed to order licenses at the end of the month or in some cases on each anniversary of their agreement

32 A number of case studies available including: VL Systems Open Value helped increase Microsoft business by 25% Learn how this partner leveraged the up-front savings to customers into demand for additional IT services Northwest Computer Support Open Value helped grow services revenues by 20%-30%. See how this partner sees revenues 1.when it implements the solutions and 2.when upgrades become available.

33 “Knowing that we’ll be collecting payments on an Open Value agreement in years two and three makes it easier to forecast our budgets and develop plans to keep growing our business.” Les Green, Director of Marketing, VLSystems “We’re seeing a 20–30 percent growth in service revenue that we can trace back directly to the software included in Open Value.” Tom Rash, President, Northwest Computer Support “Almost 80 percent of our sales generate a support contract. This recurring revenue is the name of the game for our business.” Tom Barnes, Sales and Marketing Manager, NSPI “Open Value helps us get new clients and gives us a three-pronged opportunity to build our business: recurring license revenues, larger immediate sales, and incremental service contracts.” Matt Scherocman, Director, IT Advisor Group




37 Need to simplify license tracking Look for customers who have retail, original equipment manufacturer (OEM), and/or multiple volume licensing agreements across departments or affiliates as they often find value in consolidating to a single Open Value agreement to ease their license tracking. Want to run the latest software versions Look for customers who want or need to keep their software current. These customers understand the value of running the latest software versions but often find it a challenge to justify the cost of technology upgrades. Open Value removes one barrier to upgrade projects by including rights to new versions of licensed software. Up-front software costs are a significant concern Look for customers who are running outdated versions of Microsoft licensed products. They may be struggling with the potential cost of upgrading their server infrastructure to the latest server operating system and application server versions. The ability to spread payments annually and move to a licensing model that automatically keeps licensed products up to date can be a compelling proposal.

38 Must have active Software Assurance (for the underlying qualifying product), so for all Open Value customers this is a huge benefit! Approximately 40 step up paths in volume licensing range of products, mostly servers, desktop applications After a customer has purchased a step up, they can renew the higher level product in their next agreement SA only. Important note: If you are stepping up platform products, the platform pricing discounts apply too! A step-up license allows a customer to move from a lower level edition of a product to a higher level edition of a product i.e. Office Professional » Office Enterprise Windows Server Standard » Windows Server Enterprise


40 1 page Quick References New Zealand licensing web site: Partner Licensing Web: Your account Manager Jillian Goodman, SMB Licensing Marketing Manager email:

41 FREE service funded by Microsoft New Zealand: Volume license purchase histories License information (product or program) Average response time (94% in less than 4 hours) If you can’t find the information use the services of the Microsoft NZ internal Licensing helpdesk. email:


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